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Executive Perks and Fringe Benefits Snapshot

Special perks and fringe benefits have long been used to attract, reward and improve the productivity of executives. But in recent years executive perquisites have become a lightning rod for controversy. In response to increased scrutiny and governmental regulation, many companies started cutting back on the perks and fringe benefits they provided to executives in 2006.

Results from a recent Culpepper Pay Practices and Benefits Survey reveal that most North American technology and life science companies have stopped trimming their executive perk packages. Nearly all respondents indicated that they plan to continue providing similar levels of perks and fringe benefits in 2008 as they did in 2007.

Perquisites Provided to Executives

Laptops, home PCs, mobile phones and personal digital assistants (PDAs) are the most common perks provided to executives.

In general, as companies increase in size they will provide more executive perks and fringe benefits. Small companies and start-ups typically provide fewer perks for executives. One early-stage, fast growth tech participant indicated that their total rewards program for executives emphasized cash and equity compensation, with virtually no perks.

Perquisites Provided to Executives

Type of Perk

All companies

Percent of companies by size

(# of employees)

Up to 100

101 to 1,000

Over 1,000

Laptops/

home PCs

77%

67%

91%

74%

Mobile phones/

PDAs

76%

67%

86%

80%

Employment contracts

28%

17%

30%

37%

Annual physical

18%

7%

13%

52%

Financial counseling

18%

4%

9%

50%

Reserved/paid parking

17%

17%

15%

26%

Supplemental life insurance

17%

18%

21%

20%

Income tax preparation

16%

5%

9%

38%

Supplemental disability insurance

16%

8%

29%

25%

Automobile lease payments

13%

6%

16%

24%

Airline club memberships

10%

3%

16%

14%

Supplemental retirement programs

10%

2%

6%

32%

In-office meals

9%

8%

0%

13%

Personal use of corporate auto

9%

5%

9%

14%

Entertainment tickets

8%

9%

4%

10%

Tax gross-ups

8%

3%

7%

21%

Country club memberships

7%

2%

5%

12%

Health club memberships

5%

5%

0%

8%

Home security

5%

0%

1%

12%

Limousine car service

5%

4%

4%

6%

Personal use of corporate plane

5%

0%

0%

17%

Dry cleaning

4%

1%

3%

0%

Legal counsel

4%

2%

1%

5%

Jeremy Greenup is a research analyst at Culpepper and Associates Inc., which conducts worldwide salary surveys and provides benchmark data for compensation and employee benefit programs. Leigh Culpepper is president and CEO of the firm.